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New rental law: Tenants ask for new changes - Infobae
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www.infobae.com
November 12, 2023
Given the persistence of the difficulty of obtaining long-term rentals, they argue that additional measures are needed to address the housing deficit. What do they propose?
By José Luis Cieri
Finding a home first and then renting it in Argentina is a very complex task these days. The lack of supply and high prices continues (Photo: Getty Images)
The reform of the Rental Law, in force since October 18, exacerbated the difficulties that tenants face in being able to rent. Finding a property on sale is an odyssey, marked by fleeting advertisements, endless queries and waiting lists. And the economic challenge is increasingly overwhelming: the access cost averages $1,000,0000 to make a contract , as reported by Infobae, if the tenant presents a private guarantee.
In the city of Buenos Aires, as in La Plata, Rosario or Córdoba capital, renting became increasingly complex. The decrease in the supply of real estate causes a constant increase in prices, especially in emergency situations. Moving does not allow delays and leads to a sharp increase in the cost of contracts.
Of the Rental Law enacted in June 2020 with the support of the ruling party, the duration of the contracts was maintained at 3 years as the central point. The most significant change was the elimination of the Lease Contract Index (ICL) for new agreements, although this index continues to be used in pre-existing contracts with year-on-year adjustment. Instead, the new agreements are adjusted every six months through the Casa Propia coefficient, an update based on the lowest indicator between the average inflation of the last year and 90% of the salary variation in that period.
Despite the benefits that the Own Home coefficient provides to tenants, owners show resistance to offering long-term contracts; The first contracts are being finalized in dribs and drabs . Tenant groups continue to receive queries and complaints related to owners and real estate agencies who raise demands considered “abusive.”
The most accentuated problem continues to be the request for price increases throughout the duration of the contract (especially those that are for ICL).
Furthermore, they point out that since the implementation of Casa Propia, some owners have chosen to allocate their properties to traditional rentals, especially in inland regions of the country and in the province of Buenos Aires.
Natalia Ranzuglia , a member of Inquilinxs Tres de Febrero Network of Buenos Aires Tenants and the National Tenant Movement, told Infobae that “since the approval of the modification of the Rental Law, we have noticed a marked disparity between owners who rent privately. Some of them see the semiannual increase as a way to keep their income up to date with inflation. On the other hand, complaints have been reported against real estate agencies, especially those that hold almost monopolistic control, for attempting to establish fraudulent contracts, including extensions that violate the law, quarterly increases and commercial contracts in situations intended for housing, among other cases.”
A two-bedroom apartment in CABA. There is very little supply and all of them exceed $250,000 per month and in the most expensive neighborhoods they go up to $450,000 per month.
Currently, in Greater Buenos Aires, there are no apartments available for less than $140,000 per month, while in CABA the rent for a 3-room apartment exceeds $250,000 per month and in the most exclusive neighborhoods it can reach $450,000, figures inaccessible to a worker with an average salary.
Ricardo Botana, president of the Argentine Tenants Union, highlighted that although the modification of the law provides tax advantages for owners who opt for traditional rentals, there are shortcomings in other areas. As an example, he pointed out “absence of tools such as sustainable mortgage credit. This would prevent numerous tenants with the capacity to acquire their own home from stopping paying rent.”
Tenants raise the urgent need for data and statistics in order to improve access to housing. They argue that it is crucial to have accurate and transparent information.
“To obtain this data, we must establish a government body with supervisory power, which prevents third parties from continuing to use the real estate market to launder money and manipulate prices. Without addressing these fundamental issues at their roots, a Rent Act will not be able to solve the challenges we face. Over the years, certain actors favored those who speculate and concentrate home ownership in the country, some even attempted to monopolize the rental market. Although it is not necessary to mention names, it is evident that this problem transcends political ideology and affects several actors,” added Fernández Camillo.
The first contracts through the semiannual adjustment under the Casa Propia coefficient are being celebrated, there are very few since the reform of the law came into effect on October 18.
One idea of the tenant groups is that the next national government establishes a “National Rental Secretariat”, which brings together small landlords and provides them with assistance in the administration of a group of housing intended for rent at fair prices, alleviating certain tax burdens. . This proposal is in line with what is contemplated in the current regulations that address this approach through Social Rental and has never been implemented since June 2020.
“In addition, it would be advisable to call on homeowners willing to contribute to the solution. The State could manage a portion of these properties, and thus, even if only 25% of the workers who currently rent could access their own home through mortgage loans indexed to salary. In my opinion, there are many unoccupied properties, aren't there?” Fernández Camillo added.
The general consensus is that a solid housing policy is needed that includes comprehensive programs. It would cover initiatives aimed at facilitating vulnerable sectors' access to decent housing rentals, in addition to providing credit for the construction of housing for both rental and purchase.
Botana strongly advises tenants to try to sign new rental contracts with a duration of three years, but acknowledged that the options are limited, due to the scarcity of available properties and the prevalence of contractual extensions. “However,” he concluded, “after the implementation of the law reform, it is expected that, over time, more owners will choose to benefit from tax incentives and gradually return their properties to the traditional rental market and in local currency.”
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Source:
Con la reforma de la Ley de Alquileres se potenció la escasez de oferta: los inquilinos piden nuevos cambios
Ante la persistencia de la dificultad de conseguir alquiler a largo plazo, argumentan que se necesitan medidas adicionales para abordar el déficit habitacional. Qué proponen
www.infobae.com
November 12, 2023
With the reform of the Rental Law, the shortage of supply was strengthened: Tenants ask for new changes
Given the persistence of the difficulty of obtaining long-term rentals, they argue that additional measures are needed to address the housing deficit. What do they propose?
By José Luis Cieri
Finding a home first and then renting it in Argentina is a very complex task these days. The lack of supply and high prices continues (Photo: Getty Images)
The reform of the Rental Law, in force since October 18, exacerbated the difficulties that tenants face in being able to rent. Finding a property on sale is an odyssey, marked by fleeting advertisements, endless queries and waiting lists. And the economic challenge is increasingly overwhelming: the access cost averages $1,000,0000 to make a contract , as reported by Infobae, if the tenant presents a private guarantee.
In the city of Buenos Aires, as in La Plata, Rosario or Córdoba capital, renting became increasingly complex. The decrease in the supply of real estate causes a constant increase in prices, especially in emergency situations. Moving does not allow delays and leads to a sharp increase in the cost of contracts.
Of the Rental Law enacted in June 2020 with the support of the ruling party, the duration of the contracts was maintained at 3 years as the central point. The most significant change was the elimination of the Lease Contract Index (ICL) for new agreements, although this index continues to be used in pre-existing contracts with year-on-year adjustment. Instead, the new agreements are adjusted every six months through the Casa Propia coefficient, an update based on the lowest indicator between the average inflation of the last year and 90% of the salary variation in that period.
Despite the benefits that the Own Home coefficient provides to tenants, owners show resistance to offering long-term contracts; The first contracts are being finalized in dribs and drabs . Tenant groups continue to receive queries and complaints related to owners and real estate agencies who raise demands considered “abusive.”
The most accentuated problem continues to be the request for price increases throughout the duration of the contract (especially those that are for ICL).
Some owners even request quarterly increases, arguing that inflation does not allow them to keep the rental value updated, due to the rate of inflation several months ago.
That they ask for
The law has no real meaning if there is no government entity in charge of supervising and ensuring compliance. “It is disheartening to see how some individuals, who were supposedly defending tenants' rights, continued to support an outdated approach. Fortunately, during our deliberations in the Senate of the Nation, we managed to be heard and the index was modified. The habitat situation is becoming increasingly complex. It is essential to recognize the magnitude of this challenge before the consequences become irreparable,” explained Diego Fernández Camillo , of the Platense Tenant Association and the National Tenant Movement, to Infobae.Furthermore, they point out that since the implementation of Casa Propia, some owners have chosen to allocate their properties to traditional rentals, especially in inland regions of the country and in the province of Buenos Aires.
Natalia Ranzuglia , a member of Inquilinxs Tres de Febrero Network of Buenos Aires Tenants and the National Tenant Movement, told Infobae that “since the approval of the modification of the Rental Law, we have noticed a marked disparity between owners who rent privately. Some of them see the semiannual increase as a way to keep their income up to date with inflation. On the other hand, complaints have been reported against real estate agencies, especially those that hold almost monopolistic control, for attempting to establish fraudulent contracts, including extensions that violate the law, quarterly increases and commercial contracts in situations intended for housing, among other cases.”
A two-bedroom apartment in CABA. There is very little supply and all of them exceed $250,000 per month and in the most expensive neighborhoods they go up to $450,000 per month.
Currently, in Greater Buenos Aires, there are no apartments available for less than $140,000 per month, while in CABA the rent for a 3-room apartment exceeds $250,000 per month and in the most exclusive neighborhoods it can reach $450,000, figures inaccessible to a worker with an average salary.
Missing
Specialists and defenders of tenants' rights in Argentina consider that the reform implemented is not enough to address the housing deficit.Ricardo Botana, president of the Argentine Tenants Union, highlighted that although the modification of the law provides tax advantages for owners who opt for traditional rentals, there are shortcomings in other areas. As an example, he pointed out “absence of tools such as sustainable mortgage credit. This would prevent numerous tenants with the capacity to acquire their own home from stopping paying rent.”
Tenants raise the urgent need for data and statistics in order to improve access to housing. They argue that it is crucial to have accurate and transparent information.
“To obtain this data, we must establish a government body with supervisory power, which prevents third parties from continuing to use the real estate market to launder money and manipulate prices. Without addressing these fundamental issues at their roots, a Rent Act will not be able to solve the challenges we face. Over the years, certain actors favored those who speculate and concentrate home ownership in the country, some even attempted to monopolize the rental market. Although it is not necessary to mention names, it is evident that this problem transcends political ideology and affects several actors,” added Fernández Camillo.
The first contracts through the semiannual adjustment under the Casa Propia coefficient are being celebrated, there are very few since the reform of the law came into effect on October 18.
One idea of the tenant groups is that the next national government establishes a “National Rental Secretariat”, which brings together small landlords and provides them with assistance in the administration of a group of housing intended for rent at fair prices, alleviating certain tax burdens. . This proposal is in line with what is contemplated in the current regulations that address this approach through Social Rental and has never been implemented since June 2020.
“In addition, it would be advisable to call on homeowners willing to contribute to the solution. The State could manage a portion of these properties, and thus, even if only 25% of the workers who currently rent could access their own home through mortgage loans indexed to salary. In my opinion, there are many unoccupied properties, aren't there?” Fernández Camillo added.
The general consensus is that a solid housing policy is needed that includes comprehensive programs. It would cover initiatives aimed at facilitating vulnerable sectors' access to decent housing rentals, in addition to providing credit for the construction of housing for both rental and purchase.
Botana strongly advises tenants to try to sign new rental contracts with a duration of three years, but acknowledged that the options are limited, due to the scarcity of available properties and the prevalence of contractual extensions. “However,” he concluded, “after the implementation of the law reform, it is expected that, over time, more owners will choose to benefit from tax incentives and gradually return their properties to the traditional rental market and in local currency.”
www.buysellba.com
